Finance
European shares rise on Fed rate cut hopes
Published by Global Banking and Finance Review
Posted on August 13, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 13, 2025
2 min readLast updated: January 22, 2026
European shares rose as Fed rate cut hopes increased, driven by positive US inflation data. Technology and defence stocks led the gains.
(Reuters) -European shares advanced on Wednesday, with technology and defence stocks leading gains, as global mood remained buoyant after tame U.S. inflation data cemented expectations of interest rate cuts by the Federal Reserve.
The pan-European STOXX 600 index rose 0.4%, as of 0704 GMT, with Germany's blue-chip DAX up 0.6% after dipping in the previous session.
Global stocks rallied and Wall Street closed at record highs as traders priced in a 94% chance of a Fed rate cut in September, according to the CME FedWatch tool.
Meanwhile, leaders from Europe and Ukraine are set to speak to U.S. President Donald Trump later in the day ahead of his summit with Russian President Vladimir Putin.
TUI rose 1.7% after Europe's largest tour operator posted better-than-expected results as summer travel proved to be resilient.
E.ON reported a bigger first-half core profit and maintained its full-year outlook with Europe's largest energy grids operator calling on Germany to raise future returns on grid investments. Shares were marginally up.
Vestas fell 1.8% after the wind turbine maker reported a smaller-than-expected rise in operating profit for the second quarter but maintained its fiscal-year financial outlook.
(Reporting by Twesha Dikshit; Editing by Rashmi Aich)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
A central bank is a financial institution that manages a country's currency, money supply, and interest rates.
Interest rates are the amount charged by lenders to borrowers for the use of money, expressed as a percentage.
A stock index is a measurement of the performance of a group of stocks, representing a segment of the market.
Economic growth is the increase in the production of goods and services in an economy over time, typically measured by GDP.
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